The question investors of all stripes face today is, what is the “new normal” for businesses? Unfortunately, as a recent Accenture study notes [link], “normal isn’t available to us anymore.”

In the absence of normality, sponsors and lenders are adapting.

“We historically focused on six sectors,” the partner of a top middle market private equity firm recently told us. “COVID swept two away, leaving four. Which is totally fine. We’re still getting books on the others, but we’re running with traction areas.”

The world of investment banking has seen industries up-ended by the coronavirus. Businesses traditionally sheltered during recessions – for example, low-cost fitness centers – have been slammed with shutdowns. Others with little-to-no growth coming into the crisis (e.g. printed catalogs) have flourished as consumers’ attention shifted to needs closer to home.